NEW YORK–The fraud trial of two former Marsh insurance brokerageexecutives ground into its 14th week today with testimony focusingon the relationship between a client and his broker.

The proceedings concluded this afternoon by going into atwo-week recess until July 30.

On trial before New York Supreme Court Judge James A. Yates, whois hearing the case without a jury, are William Gilman and EdwardMcNenny. They are accused of scheming to defraud, restraint oftrade and competition, and grand larceny.

Marsh is a subsidiary of New York-based services firm Marsh& McLennan Companies. They are accused of rigging bids forcommercial insurance while working for the brokerage.

In April, an attorney representing Mr. Gilman, Robert J. Cleary,told National Underwriter that the case was expected to last onlyuntil June.

In today's action, Assistant Attorney General William Gurinpresented testimony from Michael Ward, the chief financial officerfor Ozark Trucking Inc., in Sacramento, Calif., concerning Marsh'splacement of a $25 million umbrella policy with Zurich Insuranceafter the presentation of a bidding process to Ozark.

The trucking company, which hauls goods to grocery stores inCalifornia, Nevada and parts of New Mexico, worked with Marshexecutive Gregory Wessel, identified in court documents as vicepresident of risk management casualty, out of the broker's SanFrancisco office.

Mr. Ward testified that Mr. Wessel presented him with a proposalshowing that of 13 carriers Marsh offered the business to, onlyfour were willing to give quotes.

Of the four, Zurich gave the best quote at $175,000. Twoothers–St. Paul and American International Group–made offers thatwere higher, over $200,000. The fourth, Great American, offered a$25 million excess policy over the $25 million for $68,000, whichwould have equaled the $50 million coverage Ozark Truckingpreviously had.

Mr. Ward said his company was seeking to replace the expiringJan. 1, 2002 $50 million umbrella policy it had with Fireman's Fundbecause it was going to be too expensive to retain. The premium forthe expiring policy was $61,994.

According to the testimony, Mr. Wessel advised Mr. Ward wellahead of the renewal that hard market conditions after Sept. 11,2001 were driving up the cost of insurance. Mr. Wessel advisedOzark that it should cut the coverage to $25 million to reduce thecost of the premium, Mr. Ward related.

When asked by Mr. Gurin what was the overriding consideration inmaking the final determination on placement, Mr. Ward said it wasprice.

Under cross examination, defense attorney Richard Spinogattiasked Mr. Ward about his expertise as a risk manager and if hewould have been able to make the insurance placements without Mr.Wessel's expertise.

Mr. Ward said he was not trained as a risk manager and whatexperience he did have was from on-the-job training. He said thathe would not have known where to go if he did have to place theinsurance himself.

“I relied on [Mr. Wessel] to do it for me,” said Mr. Ward.

He said that Marsh was the insurance broker for Ozark since1989, before he arrived in the CFO position, and continues to be abroker on some lines today.